Despite Western sanctions and the war in Ukraine, Russian President Vladimir Putin has promised the population higher wages and pensions. Russia will expand economic ties with partners in Asia, Africa and South America to counter efforts by the West to isolate the country economically, Putin announced in a televised address on Thursday. Difficulties in terms of logistics and finances will soon be resolved.
More natural gas will be sold to “the East” and a distribution center will be set up in Turkey, Putin said. This will determine natural gas prices for Europe using an electronic platform.
Russian economy shrinks by 2.5 percent
“Despite the objective difficulties of the current year, we will achieve positive results in the fight against poverty,” Putin said. This development should be continued next year. The minimum wage must rise faster than inflation. Putin admitted that the economy is likely to shrink by 2.5 percent this year.
For the next few years, however, he promised an increase in natural gas sales to China. With the help of new pipeline projects, the corresponding annual volume is expected to increase to 88 billion cubic meters (bcm) by 2030, up from 10 bcm last year.
Interest benefit for families with children
In a later televised meeting with authorities, Putin also announced that government building subsidies would be extended for 18 months until July 2024. The preferential interest rate will rise from seven to eight percent, but families with at least two children should receive six percent . According to an index from the financial services banki.ru, the annual mortgage interest rate in Russia is just under 10.5 percent. Putin proposed a 2 percent interest rate for the four regions of Ukraine that Russia declared its own – the “new territories” in official parlance.
Experts had warned that the end of government aid could hit Russia’s construction industry hugely. It is already heavily burdened by the partial mobilization in September and the resulting shortage of labor and a general drop in demand. According to previous reports, Russia plans to spend almost a third of its budget on defense and internal security next year. On the other hand, there must be cuts in education, health care and roads.
Source: Krone

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